CyberWorks in local broadcast JV

CBS.MarketWatch.com

HONG KONG (CBS.MW) -- Pacific Century CyberWorks, Asia?s biggest Internet company outside Japan, announced it has set up a domestic broadcasting joint venture with Commercial Radio Productions Ltd. of Hong Kong.

CyberWorks will contribute working capital and broadband infrastructure and have an equity interest of 60 percent in the venture, called PCC Skyhorse Holdings. CRP will contribute multimedia programming and take the remaining 40 percent stake, said officials of both companies at a press conference on Thursday.

CRP owns three radio stations and two websites in Hong Kong. In addition, it organizes promotional activities, events and concerts aimed at youthful audiences. No financial details were disclosed.

The joint venture reflects CyberWorks? drive to acquire content throughout Asia that it can distribute over its broadband network, Network of the World. The joint venture aims to create interactive content for a worldwide Chinese audience, said Li. In doing so, CyberWorks will make use of CRP?s exclusive rights over its past and future programming on various Internet-based platforms, and further develop CRP?s existing websites, crhk.com.hk and idclub.com.

CyberWorks also plans to increase its budget for developing Internet content to $1.5 billion over the next five years, Li said. The firm will soon announce more content deals, but he did not give details.

Separately, Li brushed aside recent stories that Singapore Telecommunications and Australia?s News Corp. are making a counteroffer for Cable & Wireless HKT, Hong Kong?s dominant telecoms firm, which CyberWorks announced it would acquire in February.

?We are not aware of any credible bid. We would be notified by Cable & Wireless if such a move indeed materialized,? Li said. ?We feel very confident about the way forward in this merger [and] proceeding as usual.?

Shares of CyberWorks
pcclf
rose 3.9 percent, or 50 cents, to 13.45 Hong Kong dollars on Thursday, reversing two days of declines.

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